Cloud computing is the term used to describe access on demand to IT resources, including servers, applications (physical or virtual), development tools and storage for data. These IT resources are located in a remote datacenter managed by cloud service providers. Users can connect to this infrastructure using secured connections. Cloud services are accessible through a subscription or charging per use.

Cloud systems allow companies to reduce costs and save time on maintaining IT infrastructure. They also free IT staff to focus on other important tasks. The exact savings a company gets will depend on which system it chooses to move to the cloud and what they’re replacing. A recent survey revealed that business and IT professionals reported savings between 30 to 50% by moving to cloud.

There are a variety of cloud-based service models available in the form of Software as a Service (SaaS), Platform as a Service and Infrastructure as a Service. SaaS is the most familiar model, and is probably the one that companies already use. It provides the application layer, which includes software such as CRM email, office, and CRM software- via the internet, eliminating the necessity of maintaining or upgrading hardware.

Another advantage is the ease with which businesses can increase or decrease the size of their servers and disk space, and only pay for what they need as they need it. This elasticity that is rapid can be essential for agile processes and for swiftly introducing new technologies into production. It page also means that IT departments don’t need to worry about buying or maintaining expensive hardware. They can rely on their cloud vendors to keep up-to-date with the most recent technological advancements.